Gloria Jean's Introduces Dulce de Leche.

IRVINE, Calif. -- Gloria Jean's announced the release of their new specialty-flavored promotional coffee, Dulce de Leche. Available as a blended frozen Chiller or Hotty Toddy, as well as whole coffee beans in quarter-, half- and one-pound bags, Gloria Jean's is among the first specialty coffee chains to offer Dulce de Leche.

Dulce de Leche ("milk jam") is Latin America's traditional dessert, made over many hours by caramelizing sugar in milk, for a sweet caramel creaminess. Gloria Jean's version is a creamy, velvety smooth combination of sweet caramel with a delicious, light vanilla taste.

Gloria Jean's Vice President of Marketing, Diane Hays-Hoag, remarked: "Gloria Jean's strives to be on the cutting edge of flavor trends, and our new Dulce de Leche flavored whole bean coffee, hot and cold drinks are the latest examples. Already, the Dulce de Leche flavor is popping up all over the country in several major brands of ice cream products, various segments of the restaurant industry in wonderful desserts, and in many recipes prepared by chefs on the Food Network. We're very excited about Dulce de Leche and believe once our customers experience this incomparable new flavor, it will become one of their new favorites."

Providing the ultimate coffee experience for nearly 25 years, Gloria Jean's is the largest mall-based premier provider of specialty-flavored whole bean coffees with over 422 stores worldwide -- 146 domestic and 276 international units. Using only the finest quality, single-origin 100 percent Arabica coffee beans, Gloria Jean's meticulously roasts and flavors to exacting standards. With over 40 specialty-flavored coffees and more than 20 origins and blends, Gloria Jean's offers the finest coffees you can buy. Gloria Jean's coffees, teas and cocoas are also available online. For store locations, call 800-354-JAVA (5282) or visit www.gloriajeans.com.

With headquarters in Irvine, Gloria Jean's Gourmet Coffee is a subsidiary of Diedrich Coffee Inc. (Nasdaq:DDRX). Gloria Jean's specializes in sourcing, roasting and selling the world's highest-quality coffees. Diedrich Coffee Inc.'s two primary brands are Diedrich Coffee, with retail coffeehouses primarily in California, Colorado and Texas, and Gloria Jean's Coffees, the nation's leading retail chain of mall-based coffee stores. The company's 476 retail outlets, the majority of which are franchised, are located in 35 states and 13 foreign countries. Gloria Jean's and Diedrich Coffee also sells its coffees through more than 460 wholesale accounts including office coffee service distributors, restaurants and specialty retailers, and via mail order and the Internet. For more information about Diedrich Coffee, call 800-354-5282, or visit the company's Web sites at www.gloriajeans.com and www.diedrich.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Diedrich Coffee Inc.'s business which are not historical facts are "forward-thinking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-thinking statement, see "Risk Factors" in the Company's Annual Report or Form 10-K/A for the most recently ended fiscal year.